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Chinese Espionage Ring

CHINESE CYBER SPYING

Chinese computer hackers, some linked to the military, engaged in an aggressive international campaign of electronic espionage through the Internet from 2003 through at least 2009, according to documents obtained by Inside the Ring.

The electronic spying campaign targeted large amounts of data and information from U.S. government and private sector networks, as well as from the French and German governments, other states and international organizations.

The documents, labeled “secret,” provide some of the first details to be made public on Chinese cyberspying and reveal a U.S. government program to monitor and halt the activity that was code-named “Byzantine Hades.”

A State Department cable dated April 2, 2009, states that Byzantine Hades activity appeared linked to the Chinese military in Chengdu. The cable was a department Diplomatic Security Bureau report that discussed the findings of Canadian security researchers, who dubbed the worldwide Chinese intrusions “GhostNet.”

The researchers identified four Internet domains that “were involved in Byzantine Hades intrusion activity in 2006,” the cable says.

“Subsequent analysis of registration information also leads to a tenuous connection between these hostile domains and the People’s Liberation Army [PLA] Chengdu Military Region First Technical Reconnaissance Bureau [TRB].”

The disclosure is the first official U.S. government report linking global computer hacking to China’s military.

According to the cable, a Chengdu hacker named Chen Xingpeng was linked to the PLA Technical Reconnaissance Bureau, which also is called the Military Unit Cover Designator 78006.

The cable says there was no official link between Byzantine Hades spying and the PLA reconnaissance bureau, but noted “much of the intrusion activity traced to Chengdu is similar in tactics, techniques, and procedures to BH activity attributed to other PLA [Technical Reconnaissance Bureaus].”

The link between Mr. Chen and the Chinese military “further emphasizes the idea that this clandestine ‘cyber-spying’ network may in fact be a state-sponsored intelligence-gathering operation,” the cable says.

The documents were first disclosed by the Reuters news agency.

Further signs of China’s Byzantine Hades activities surfaced in the past two weeks in a report by the McAfee computer security firm, which dubbed unidentified computer intrusions in more than 71 networks “Shady Rat.”

The McAfee report did not name China in the computer attacks, but other experts said all indications pointed to Beijing’s involvement and methods similar to those used in the government’s Byzantine Hades intelligence.

A Nov. 5, 2008, State Department cable disclosing international talks in Berlin on cyber-espionage also provide new details of Byzantine Hades computer strikes.


Russia and China accused of cyber-spying campaign to steal U.S. secrets

The military and intelligence services of Russia and China are conducting a sustained campaign to steal American commercial and military secrets through cyber espionage, according to the chairman of the House Intelligence Committee, and he warned that sophisticated computer hacking poses a major danger to U.S. interests.

“Nation states are investing huge amounts of time, personnel and money to steal our data,” Rep. Mike Rogers (R-Mich.) said Friday in a speech to an association of retired U.S. intelligence officers. “We are not as prepared as we need to be.”

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Uzbekistan Jails Former Gold Mine Employee on Spying Charges

A court in Uzbekistan has sentenced a former employee of British mining company Oxus Gold to 12 years in prison on charges of industrial espionage.

The company said in a statement Thursday that a military court convicted Said Ashurov, who worked as chief metallurgist at a joint venture, which is at a center of dispute between the British company and Uzbekistan authorities.

The Amantaytau Goldfields joint venture is developing some of the world’s most promising gold fields in the central Asian country.

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Report on ‘Operation Shady RAT’ identifies widespread cyber-spying

Other targets included the networks of the International Olympic Committee, the United Nations secretariat, a U.S. Energy Department lab, and a dozen U.S. defense firms, according to a report released Wednesday by McAfee, a security firm that monitors network intrusions around the world.

McAfee said hundreds of other servers have been used by the same adversary, which the company did not identify.

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B&B owner jailed for guest-spying

Paul Williams

Williams told police he saw it as a chance to spy on couples having sex

The owner of a Scarborough bed-and-breakfast who used peepholes to spy on guests in their rooms, has been jailed.

Paul Williams, 60, who runs the Sandsea guest house in Devonshire Drive, was jailed for 18 weeks at Scarborough Magistrates’ Court.

Williams, who admitted voyeurism and observing a private act for sexual gratification, also made recordings of couples in their rooms.

Magistrates said the offences were so serious only jail could be justified.

The court was told in May about three young couples who had stayed at the guest house.

On the first night they returned to their rooms one of the guests, a 16-year-old girl, noticed a piece of paper moving on a door to her room.

After investigating, her boyfriend found a hole behind it.

Sandsea guest house in ScarboroughWilliams has also been placed on the sex offenders register

He then heard movement in the corridor outside and discovered Williams who was wearing just a dressing gown.

The court heard the girl’s friends also found spy holes in their doors.

Magistrates were told he had put in the holes a couple of years previously because some guests were leaving without paying.

He then told police he saw it as an opportunity to spy on couples having sex and record them.

Williams was also placed on the sex offenders register.